Automation and control market to hit $427m in 2018

The automation and control systems market in Southeast Asia (SEA), Australia and New Zealand (ANZ) is predicted to reach US$427.9 million in 2018, new analysis from Frost & Sullivan shows. End-user segments covered in the research include the alternate energy, smart grid and pharmaceutical sectors.

Attractive returns that outweigh the cost of purchase and installation of automation solutions have sustained investments in the automation and control market for emerging segments in SEA and ANZ, the research firm says.

“In addition, globalisation has compelled emerging sectors in the region to catch up with already-developed end-user segments, forcing them to turn to automation and control solutions,” said Frost & Sullivan Industrial Automation and Process Control Senior Research Analyst Vandhana Venkatesan.

“The need to boost safety through automation, meet industrial standards and regulations, and ease workflow operation has aided market development.”

Increasing investments in the region’s smart grid sector boosts opportunities for power distribution, paving the way for the large-scale uptake of automation and control solutions. The scope of the alternate energy source sectors adds to the market’s potential in SEA and ANZ.

This potential must be taken full advantage of, especially as the presence of Chinese and regional market participants that provide low-quality solutions at lower prices has intensified competition, Frost says. Automation vendors in the region need to educate end users on the benefits of quality solutions that reduce machinery downtime.

“Technological improvements in terms of customisation are crucial to cater to niche segments and will drive the industry toward new avenues for revenue generation, such as cloud computing,” noted Venkatesan. “Offering service support and training, which are key factors that determine end users’ choice of automation vendors, will ensure market expansion.”